Cryptocurrencies have undeniably created a splash in modern culture in many ways, but one of its major social benefits goes largely unnoticed. Lately, the rise of Crypto is fueled by a blend of speculative dreams and fear of missing out, exaggerating the demand, and punting prices sky-high. How this bodes for the sector as a whole remains to be seen. Such wild rides could encourage innovation with an injection of capital or drown the ecosystem in scams while eroding consumer trust with repeated large-scale thefts, flash crashes, and wild surges.
Deep beneath the crashing waves of price fluctuations, an infrequently mentioned undercurrent is ushering in an ideological shift.
Active monitoring and management of finances is coming to the attention of a younger generation that otherwise underutilizes traditional financial instruments and over half of which has little to no savings.
Crypto investors, who are mostly under 35, are taking control of their finances, thinking about the future, and learning about traditional financial systems by questioning if they are the only way to do things. They are also realizing how much trust is placed in these institutions and whether that is necessarily a good thing. Whether there is a right answer is a totally separate issue, but the fact that cryptocurrencies are inspiring users to learn more about the way their finances work under-the-hood is a respectable achievement.
The classic question “Why is a Bitcoin even worth anything?” eventually brings up “Why is a dollar worth anything?” The quick, common response is that the value stems from people wanting it and willingness to trade goods and services for it. Sure, you have additional elements like whether its value is held over time or how easily it is exchanged and transferred (the US government’s support and being able to pay your taxes in the USD), but asking fundamental questions like why we even care about green pieces of paper is inspiring a critical shift towards financial education.
Another important lesson, risk management, is being taught every time a correction bears its head. Researching emerging technologies while being able to buy coins and truly take part in an economic explosion built on these advancements brings so much more excitement and glory compared to traditional penny stocks. Extremely low financial barriers of entry allow anyone to take part in the market without a broker or traditionally high exchange fees too. Young investors are experiencing upheavals and learning from mistakes at an accelerated pace due to the extreme volatility and rate of information spread, all while being a part of a potential financial revolution.
Whether you’re biting nails, deciding to cash out gains, or HODLing to the moon, the thrill of the hair trigger crypto market is bringing financial awareness and education back into mainstream dialogue just when we need it most.
A quick word on this publication
Discussions about greed, scams, overnight millionaires and “which side of a hard fork is right” all have a proper place in the growing community of crypto, but I wanted to take a chance starting Block Authority with fresh perspectives on the changes that these technologies bring. I believe that the technical underpinnings of the speculative coin market we are witnessing hold vast untapped potential, so this is where my focus will be. I’m aiming for a moderately technical discussion and evaluation of the mechanisms and properties of blockchain that proponents claim will change the world, while others see as a solution to a non-existent problem.
More to come… David